LXi REIT has acquired a Dobbies Garden Centre and gym for a combined price of £17.1m, reflecting a 5.6% blended net initial yield.
The 18-acre garden centre in Morpeth, Northumberland, was acquired from Dobbies Garden Centres and leased back to the business for another 30 years with a guarantee from its parent Dobbies Garden Centres Group.
The new lease benefits from annual RPI-linked rent reviews collared at 1% per annum and capped at 4% per annum compound.
The 15,000 sq ft gym in Andover, Hampshire, is a forward purchase. It has already been fully prelet to Pure Gym on a 15-year lease, with five-yearly fixed rental uplifts.
Both acquisitions have been mainly funded through the sale of a portfolio of social housing assets for £14.05m to a social housing specialist.
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